Samsung Electronics and SK hynix shares 114% and 186% surge; memory cycle warning
With memory demand surging on AI demand, Samsung Electronics shares rose about 114%, while SK hynix shares rose about 186%. While the industry sees the demand surge as supporting expectations of a prolonged boom, some voices have also warned about the recurrence of past 3 to 4-year business cycles.
Growing demand for artificial intelligence (AI) is driving an improvement in the memory industry's performance. 2022The backdrop is a surge in demand for high-bandwidth memory (HBM) following the launch of ChatGPT at the end of . As a result, shares of related companies have risen sharply. Samsung Electronics shares have risen about 114% so far this year. SK hynix shares have risen about 186% over the same period. A U.S. company has followed a similar trend. Micron Technology shares have risen about 141%, while SanDisk shares have risen about 156%. The memory industry has typically alternated between booms and downturns in cycles of 3 to 4 years, depending on supply and demand. In the past, performance plunged after boom periods as rising inventories coincided with slowing demand. Meanwhile, the industry has raised the possibility of a structural supply shortage amid surging demand resulting from the expansion of AI infrastructure. Some experts, however, have pointed out that the memory industry's cyclical nature should still be treated with caution. William de Gale, a portfolio manager at BlueBox Asset Management, said, "In the long term, memory is a fairly dreadful industry." He added, "Whenever people have argued that 'memory has now become an industry that creates long-term value,' things have gone wrong."
Sources: 뉴시스 경제
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